https://theathletic.com/968170/2019/...-nba-and-more/
In his own words: Pacers owner Herb Simon discusses his team, arena upgrades, state of the NBA and more
Herb Simon is a background owner, involved in his Pacers without meddling. He’s also owned the team since 1983, making him the longest-tenured owner in the NBA.
Simon doesn’t often do interviews, but he sat down this week with The Athletic Indiana to talk about the state of the team, the league and life as an NBA owner.
Here’s our conversation:
Of all the current NBA owners, you have the longest tenure, having owned the Indiana Pacers for 36 years, since 1983. Is that something you take particular pride in?
Everything in life is timing, right? When we got it, the city fathers needed somebody to own the team and reached out to (my late bother, Melvin) and I. It wasn’t that important to me at the beginning except to keep it in the city. I had another life in business so it was just there, but as I’ve gotten older, I’ve become more involved and it’s become more important to me and brought me greater enjoyment, so I’m all in on the Pacers.
Why did you and Mel step up and buy the team during that desperate time in the Pacers history?
Well, if you remember, the team was going to be moved to Sacramento at the time and the city fathers came to us to see if we would do something at the time. We were both so young back then; our business was just getting started. At the time, I thought, ‘Wow they must think a lot of me.’ Twenty years later (Pacers executive and longtime Indianapolis mover and shaker) Jim (Morris) admitted to me we were the sixth people they went to. But I’m glad they did.
We talked several years ago, I think around 10 years ago, and you talked about how much money the team was losing after the lean years that came after The Brawl in Detroit. Have there been times when you thought about washing your hands of the franchise?
Well, it got sticky after the Brawl and then in 2008-09, when we went into a recession. There were major cash losses during that period of time. That’s when my brother and his wife wanted to get out and sell and I took a chance and bought it. It was scary for a while, but I always felt that it was going to be OK. But yes, I’ve thought twice about it, sure, when the team was losing money and the team wasn’t worth what it is now, it was a very scary time. But I never gave up hope and I never, EVER, wanted to get rid of it.
The franchise just made a deal with the city to upgrade Bankers Life Fieldhouse and the areas surrounding the arena. Why did you feel like that was something that was necessary?
It was important for two reasons: One, we want to make sure the team is here long after I’m gone, and second, I also wanted to put in more public spaces to make the arena more enjoyable as a focal point in the city. We’re really changing the inside of the building (Bankers Life Fieldhouse) and get it ready for the 21st century the way people like to be entertained and watch basketball games. It has a lot of other activities. The inside will be especially up to date.
While you’re spending all this money, can you please fix the Internet? I’d appreciate that.
Listen (laughing), I have some of the nicest homes and my phone doesn’t work well in either one, so don’t tell me your sob story.
(Note from Kravitz: I have only one home and can barely make the mortgage, so don’t tell me about sob stories).
The one criticism I hear from fans and taxpayers is this: Why should a privately owned sports franchise be feeding at the public trough at taxpayer expense? How do you counter that argument?
I think most people understand that this deal is an economic benefit to the city and state. I’ve heard very limited criticism.
(Note: At this point, Rick Fuson, the Pacers president, is sitting in and tells me the way he helped pitch it to the city. According to economic studies he’s seen, the Pacers produce $400 million a year in revenue for the city and employ over 4,000 people. In addition, the majority of the money in this latest deal will come in from out of state).
After the lean years, when you were losing money, did you ever think about selling or moving the franchise?
Never. Moving was never an option. Because don’t forget: The city fathers came to us to keep the team in the city. Now the team is worth a lot more in another city, what kind of gratitude would that be if we moved it to make some extra money? I couldn’t live with myself.
(Note: Simon bought the Pacers in 1983 for $10.5 million; it’s now worth more than a billion).
How would you characterize the fiscal strength of your franchise now?
I think we’re as healthy as we’ve been. We’re still accumulating a lot of losses, but we’re in better shape now with the new CBA and revenue sharing. So the pressure is off for a while.
(Note: Simon also owns the WNBA’s Indiana Fever, Pacers Gaming and the G-League team, the Fort Wayne Mad Ants).
How would you describe your ownership style and philosophy? You seem to be hands on without meddling, enthusiastic without being the Clippers’ Steve Ballmer or the Mavericks’ Mark Cuban.
My ownership style has changed.
How so?
In the beginning, I had another business and I was just checking in on it, honestly. It was in very capable hands with Donnie Walsh and (president) Rick (Fuson, who has been with the organization for 35 years). As I got more involved with the league and finally owned the whole team, I became more involved. But as an owner, I’m not a basketball man. I don’t consider myself an expert. I played in the schoolyard as a kid, but never anything beyond that. I still have to make the final decision, but it’s wholly dependent on what the basketball people think. I’ve seen too many times when people (in ownership) think they know basketball. It’s not a science; even the greatest make mistakes. But with Donnie, Larry (Bird) and now Kevin (Pritchard), I feel very comfortable letting them do what they have to do. We haven’t had much turnover here and all three guys are still with us, as a matter of fact.
Is it safe to assume that owning an NBA team is a whole lot different than owning a mall or real estate?
Absolutely. When you own a piece of real estate, there’s no real emotion to it. It’s nothing like owning a team. With a team, you’re talking about young men, exciting plays, emotion, great plays up and down the court.
You seem like an intense fan. You watch very closely without getting wildly emotional.
I’m not pleasant to be with, that’s why I sit next to Donnie, we both take it seriously.
What are some of the challenges you face as one of the smaller markets in the NBA?
Some days, it can be a problem but right now, it’s not a problem. And we don’t want to use it as an excuse. You look at San Antonio, they’re about the same size market as we are, and they’ve had a lot of success. You see what Milwaukee is doing right now. So we have no excuses.
You would acknowledge, though, that you have to approach team building differently than a large-market team that can lure a Kevin Durant or a Kawhi Leonard.
Well, sure, there are limitations. But you look at Milwaukee, they did it the right way through the draft. Not that there’s a right way or a wrong way, but they’ve done it the way we try to do it: Through the draft and strategic acquisitions while knowing that maybe we’re not going to get the No. 1 free agent. And when Victor (Oladipo) gets healthy; he’s a better person than he is a basketball player and he’s a pretty good basketball player.
You’ve paid into the luxury tax before. Are you willing to go that route if your management team comes to you and says, ‘We can get a high-level player who’s going to increase the payroll and possible mean paying the tax?’
To be honest, the luxury tax is something you don’t want to enter into, especially on a repeating basis because it gets very prohibitive. You’ve got to be creative. There’s always that time when you think you can go for the whole thing, then you think you can go into the tax, but just as a matter of course, we haven’t been faced with it (largely because the Pacers don’t draw big-name free agents). My philosophy is we’ll do what we have to do, but we’ll do it for the right reasons. Not because someone is threatening to leave, and not because we’re afraid of the press because mean guys like you say we won’t spend any money. We don’t care what you guys have to say because you don’t know what you’re talking about.
Wait, I’ve never criticized you for failing to spend more money.
I meant that generically. You know, you started out sassy, but I’ve come around to like you (smiling).
So just to clarify, if Kevin (Pritchard) came to you and said he could get the kind of stud free agent who rarely, if never, comes to Indy, you’ll say …
Absolutely. If it’s for the right player and for the right reasons, I’ll do it.
(Note: Oklahoma City’s payroll was more than $145 million and they paid more than $91 million into the luxury tax. They won one more game than the Pacers, who not only had the 25th-ranked payroll in the NBA, but lost Oladipo in the 36th game of the season).
After the Brawl, you were forced to trade away players like Ron Artest, Stephen Jackson and Jamaal Tinsley. That would have been a perfect time to tank, but the franchise refused to embark on a version of The Process. Management often talks about your distaste for tanking.
When Donnie was struggling early, we tried to win every game even though we didn’t have a very good team. We never started dumping in order to get higher draft picks. It was never in our DNA and never will be. It’s the one thing I tell them, I want to play to win, not dump. It’s just not the way we do business.
Does it bother you when a team like Philadelphia adopts a strategy of losing in order to position themselves at the top of the draft?
It takes a lot to bother me right now (smiling).
Am I bothering you now?
No, I told you, you used to be tough on us, but I’ve come around on you.
What was your takeaway from the four-game playoff loss to the Boston Celtics?
It’s a sore spot with me. We were ahead in every game. Maybe we were just missing Victor. Don’t get me wrong, I think our team played very hard and very well and we had a chance to win every game, and that’s all you can expect out of them. We didn’t give up at all. I’m very proud of them.
So much has changed in the NBA during the 36 years you’ve owned the Pacers. What are some of the biggest changes?
I’d say the biggest thing is the fact it’s more and more international now. I’ve been on the NBA China Board since its inception and we’ve seen that business grow a lot in China and we’re looking in other areas of the world. Basketball along with soccer are now the two universal games. It’s really encouraging to see what’s happening internationally. We had a game in China; did you know there was a Pacers fan club out there? They came in the hotel lobby, a Pacers fans club; we had no idea they existed.
Is this a good pro basketball town?
(After a three-second pause): I think we have the enthusiasm here. We still don’t get the income other teams get; we’re still below the league average. But I think we put out a pretty good product – 24 times in the playoffs in 30 years, 30 straight years of winning records at home – and I think people appreciate what we’re doing. I believe that.
In his own words: Pacers owner Herb Simon discusses his team, arena upgrades, state of the NBA and more
Herb Simon is a background owner, involved in his Pacers without meddling. He’s also owned the team since 1983, making him the longest-tenured owner in the NBA.
Simon doesn’t often do interviews, but he sat down this week with The Athletic Indiana to talk about the state of the team, the league and life as an NBA owner.
Here’s our conversation:
Of all the current NBA owners, you have the longest tenure, having owned the Indiana Pacers for 36 years, since 1983. Is that something you take particular pride in?
Everything in life is timing, right? When we got it, the city fathers needed somebody to own the team and reached out to (my late bother, Melvin) and I. It wasn’t that important to me at the beginning except to keep it in the city. I had another life in business so it was just there, but as I’ve gotten older, I’ve become more involved and it’s become more important to me and brought me greater enjoyment, so I’m all in on the Pacers.
Why did you and Mel step up and buy the team during that desperate time in the Pacers history?
Well, if you remember, the team was going to be moved to Sacramento at the time and the city fathers came to us to see if we would do something at the time. We were both so young back then; our business was just getting started. At the time, I thought, ‘Wow they must think a lot of me.’ Twenty years later (Pacers executive and longtime Indianapolis mover and shaker) Jim (Morris) admitted to me we were the sixth people they went to. But I’m glad they did.
We talked several years ago, I think around 10 years ago, and you talked about how much money the team was losing after the lean years that came after The Brawl in Detroit. Have there been times when you thought about washing your hands of the franchise?
Well, it got sticky after the Brawl and then in 2008-09, when we went into a recession. There were major cash losses during that period of time. That’s when my brother and his wife wanted to get out and sell and I took a chance and bought it. It was scary for a while, but I always felt that it was going to be OK. But yes, I’ve thought twice about it, sure, when the team was losing money and the team wasn’t worth what it is now, it was a very scary time. But I never gave up hope and I never, EVER, wanted to get rid of it.
The franchise just made a deal with the city to upgrade Bankers Life Fieldhouse and the areas surrounding the arena. Why did you feel like that was something that was necessary?
It was important for two reasons: One, we want to make sure the team is here long after I’m gone, and second, I also wanted to put in more public spaces to make the arena more enjoyable as a focal point in the city. We’re really changing the inside of the building (Bankers Life Fieldhouse) and get it ready for the 21st century the way people like to be entertained and watch basketball games. It has a lot of other activities. The inside will be especially up to date.
While you’re spending all this money, can you please fix the Internet? I’d appreciate that.
Listen (laughing), I have some of the nicest homes and my phone doesn’t work well in either one, so don’t tell me your sob story.
(Note from Kravitz: I have only one home and can barely make the mortgage, so don’t tell me about sob stories).
The one criticism I hear from fans and taxpayers is this: Why should a privately owned sports franchise be feeding at the public trough at taxpayer expense? How do you counter that argument?
I think most people understand that this deal is an economic benefit to the city and state. I’ve heard very limited criticism.
(Note: At this point, Rick Fuson, the Pacers president, is sitting in and tells me the way he helped pitch it to the city. According to economic studies he’s seen, the Pacers produce $400 million a year in revenue for the city and employ over 4,000 people. In addition, the majority of the money in this latest deal will come in from out of state).
After the lean years, when you were losing money, did you ever think about selling or moving the franchise?
Never. Moving was never an option. Because don’t forget: The city fathers came to us to keep the team in the city. Now the team is worth a lot more in another city, what kind of gratitude would that be if we moved it to make some extra money? I couldn’t live with myself.
(Note: Simon bought the Pacers in 1983 for $10.5 million; it’s now worth more than a billion).
How would you characterize the fiscal strength of your franchise now?
I think we’re as healthy as we’ve been. We’re still accumulating a lot of losses, but we’re in better shape now with the new CBA and revenue sharing. So the pressure is off for a while.
(Note: Simon also owns the WNBA’s Indiana Fever, Pacers Gaming and the G-League team, the Fort Wayne Mad Ants).
How would you describe your ownership style and philosophy? You seem to be hands on without meddling, enthusiastic without being the Clippers’ Steve Ballmer or the Mavericks’ Mark Cuban.
My ownership style has changed.
How so?
In the beginning, I had another business and I was just checking in on it, honestly. It was in very capable hands with Donnie Walsh and (president) Rick (Fuson, who has been with the organization for 35 years). As I got more involved with the league and finally owned the whole team, I became more involved. But as an owner, I’m not a basketball man. I don’t consider myself an expert. I played in the schoolyard as a kid, but never anything beyond that. I still have to make the final decision, but it’s wholly dependent on what the basketball people think. I’ve seen too many times when people (in ownership) think they know basketball. It’s not a science; even the greatest make mistakes. But with Donnie, Larry (Bird) and now Kevin (Pritchard), I feel very comfortable letting them do what they have to do. We haven’t had much turnover here and all three guys are still with us, as a matter of fact.
Is it safe to assume that owning an NBA team is a whole lot different than owning a mall or real estate?
Absolutely. When you own a piece of real estate, there’s no real emotion to it. It’s nothing like owning a team. With a team, you’re talking about young men, exciting plays, emotion, great plays up and down the court.
You seem like an intense fan. You watch very closely without getting wildly emotional.
I’m not pleasant to be with, that’s why I sit next to Donnie, we both take it seriously.
What are some of the challenges you face as one of the smaller markets in the NBA?
Some days, it can be a problem but right now, it’s not a problem. And we don’t want to use it as an excuse. You look at San Antonio, they’re about the same size market as we are, and they’ve had a lot of success. You see what Milwaukee is doing right now. So we have no excuses.
You would acknowledge, though, that you have to approach team building differently than a large-market team that can lure a Kevin Durant or a Kawhi Leonard.
Well, sure, there are limitations. But you look at Milwaukee, they did it the right way through the draft. Not that there’s a right way or a wrong way, but they’ve done it the way we try to do it: Through the draft and strategic acquisitions while knowing that maybe we’re not going to get the No. 1 free agent. And when Victor (Oladipo) gets healthy; he’s a better person than he is a basketball player and he’s a pretty good basketball player.
You’ve paid into the luxury tax before. Are you willing to go that route if your management team comes to you and says, ‘We can get a high-level player who’s going to increase the payroll and possible mean paying the tax?’
To be honest, the luxury tax is something you don’t want to enter into, especially on a repeating basis because it gets very prohibitive. You’ve got to be creative. There’s always that time when you think you can go for the whole thing, then you think you can go into the tax, but just as a matter of course, we haven’t been faced with it (largely because the Pacers don’t draw big-name free agents). My philosophy is we’ll do what we have to do, but we’ll do it for the right reasons. Not because someone is threatening to leave, and not because we’re afraid of the press because mean guys like you say we won’t spend any money. We don’t care what you guys have to say because you don’t know what you’re talking about.
Wait, I’ve never criticized you for failing to spend more money.
I meant that generically. You know, you started out sassy, but I’ve come around to like you (smiling).
So just to clarify, if Kevin (Pritchard) came to you and said he could get the kind of stud free agent who rarely, if never, comes to Indy, you’ll say …
Absolutely. If it’s for the right player and for the right reasons, I’ll do it.
(Note: Oklahoma City’s payroll was more than $145 million and they paid more than $91 million into the luxury tax. They won one more game than the Pacers, who not only had the 25th-ranked payroll in the NBA, but lost Oladipo in the 36th game of the season).
After the Brawl, you were forced to trade away players like Ron Artest, Stephen Jackson and Jamaal Tinsley. That would have been a perfect time to tank, but the franchise refused to embark on a version of The Process. Management often talks about your distaste for tanking.
When Donnie was struggling early, we tried to win every game even though we didn’t have a very good team. We never started dumping in order to get higher draft picks. It was never in our DNA and never will be. It’s the one thing I tell them, I want to play to win, not dump. It’s just not the way we do business.
Does it bother you when a team like Philadelphia adopts a strategy of losing in order to position themselves at the top of the draft?
It takes a lot to bother me right now (smiling).
Am I bothering you now?
No, I told you, you used to be tough on us, but I’ve come around on you.
What was your takeaway from the four-game playoff loss to the Boston Celtics?
It’s a sore spot with me. We were ahead in every game. Maybe we were just missing Victor. Don’t get me wrong, I think our team played very hard and very well and we had a chance to win every game, and that’s all you can expect out of them. We didn’t give up at all. I’m very proud of them.
So much has changed in the NBA during the 36 years you’ve owned the Pacers. What are some of the biggest changes?
I’d say the biggest thing is the fact it’s more and more international now. I’ve been on the NBA China Board since its inception and we’ve seen that business grow a lot in China and we’re looking in other areas of the world. Basketball along with soccer are now the two universal games. It’s really encouraging to see what’s happening internationally. We had a game in China; did you know there was a Pacers fan club out there? They came in the hotel lobby, a Pacers fans club; we had no idea they existed.
Is this a good pro basketball town?
(After a three-second pause): I think we have the enthusiasm here. We still don’t get the income other teams get; we’re still below the league average. But I think we put out a pretty good product – 24 times in the playoffs in 30 years, 30 straight years of winning records at home – and I think people appreciate what we’re doing. I believe that.
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